Meeting the Challenges of Brand Relevancy In An
Meeting the Challenges of Brand Relevancy In An Increasingly Resistant Environment Perceptions on Industry Trends and Their Effect on Agencies & Publishers Prepared For: Association of Medical Media
Contributing Factors To The Increase Of Physician Isolation From The Industry
Physicians Need To Do More To Earn The Same Money Managed Care Fee Structure Increased Throughput 111 patients/week 135 Rx’s/week Reimbursement Paperwork No Time For Non $$$ Rep Access little or none Less Time MD’s begin to seek other channels
Physicians Are Inundated By Sales Representatives > 1 Rep for every 2 called-on physicians Called-on Physician Universe Number of Pharmaceutical Company Representatives Source: IMS Consulting, Fairfield, CT
…Now There Is a Significant Push Back By Practitioners 43% Don’t get past 57% Get past No See 35% See 65% 43% Never get past the receptionist 35% of physicians not seeing reps at all 7% >2” 93% of sales rep visits last < 2 minutes 93% <2”
Physicians Need To Do More To Earn The Same Money Practicing in a cost controlled environment has left little time for industry interaction with key customers Managed Care Fee Structure Increased Throughput 111 patients/week 135 Rx’s/week Reimbursement Paperwork No Time For Non $$$ I need to maintain my income/ living Rep access little or none Less time MD’s begin to seek other channels Physician’s Need To Maintain Control Over Their Time
Rise of DTC/Internet Has Revolutionized the Practice Dynamic Professional Environment Rapid Medical Advancement Empowered Patients Physicians challenged Better understanding of disease Industry excelled at patient outreach New Diagnostic tools/earlier prevention Patients are self diagnosing and treating—just need the MD for Rx Increase in specialized medications
Information Asymmetry and The Power of the Internet “The Internet has accomplished what even the most fervent consumer advocates usually cannot: it has vastly shrunk the gap between the experts and the public” Physician expertise is challenged Physician’s need to keep up
70% of Physicians Use Internet for Researching Drug Info 33% 46% 20% Source: Manhattan Research, LLC, 2004
A Website Doesn’t Equal Adequate Online Presence e. Pharma Physicians’ use of Web-based pharmaceutical information resources in frequency by type… Source: Manhattan Research, LLC, 2004
Younger Physician Prefer Online Reading preferences of primary care internal medicine residents on ambulatory rotations Online Dominates Source: J Gen Intern Med v. 21(5); May 2006
Clinical Events Prompt Inquires Reading habits are often “need based” Source: J Gen Intern Med v. 21(5); May 2006
Doctors Are Only Human Despite their serious need to keep abreast of new medical information, real world distractions can put reading on the back burner
Rise of DTC/Internet Has Revolutionized the Practice Dynamic Patient’s are becoming highly in-tune with their health, more demanding (Baby Boomers) Dynamic Professional Environment Rapid Medical Advancement Empowered Patients Physicians challenged Need Pertinent Information Easy/Fast Better understanding of disease Industry excelled at patient outreach New Diagnostic tools/earlier prevention Patients are self diagnosing and treating—just need the MD for Rx Increase in specialized medications Physician’s Need To Be “Up-to-date” to Remain in Control Over Treatment Decisions
Getting Ready for The Future • Pharma promotion needs to enhance online presence, search engine visibility and userfriendliness • Link Pharma content to FAQ’s and “real world” clinical issues • Use the power and creativity of interactive technology to lessen the reading burden
Negative Public Opinion Shaping Physician Perception Pharma & Increased OOP medical $$$ To Patient community too close Physicians Vilified Physician Recoil Driving increase/healthcare utilization Rise in “No See” Offices Inappropriate Rep Programs—Ph. RMA Guidelines Increase in Peer-to-Peer Activities Branded vs. Generic use
Physicians Desire More Non-Personal Channels Current/Desired Pharma Info. Sources & Mktg. Channel Mix 40 % of Survey MDs Responding (N =1, 013) 35 30 25 Current Desired 20 15 10 5 0 Sales Reps Offline CME Online CME Conferences Dinner Mtgs e. Detailing Source: Manhattan Research, LLC, 2004
Negative Public Opinion Shaping Physician Perception Public Outcry On Physician/Industry Relationship Fueled Marketing Reformation Pharma & Increased OOP medical $$$ To Patient community too close Physicians Vilified Physician Recoil Need To Protect Myself Driving increase/healthcare utilization Rise in “No See” Offices Inappropriate Rep Programs—Ph. RMA Guidelines Increase in Peer-to-Peer Activities Branded vs. Generic use By Distancing Themselves From Pharma, Physician Retain Credibility
Contributing Factors To The Difficulty In Message Dissemination
Big Pharma Challenged To Adapt R&D Expensive & Risky 7 Yrs Of Patent Protection Rapid Acceleration MD Dialogue Pressured MCO are adept at converting brands to generic Regulatory/Industry imposed regulation Limited Exclusivity/crowded mkt place Fewer Foot Soldiers/Less Access Product differentiation—cost of entry Need ROI
Controlled Media Are On the Rise • Marketers need efficient on-line channels that integrate with journal advertising • Follow established “precision marketing” strategies used in consumer products campaigns
“E-Physicians”—Here To Stay 379, 000 practicing MDs say they’ve participated in e-detailing within past 12 mos. and say they seek drug information online at least monthly 64% of 595, 000 practicing MDs are described as “e. Pharma Physicians” On average, they write at least 40 Rxs/Wk, and see at least 40 patients each week Source: Manhattan Research, LLC, 2004
Merck Is the Perceived Leader In “E” Communications Source: Verispan’s e. Promotion Annual Study 2006
Big Pharma Challenged To Adapt Customer(s) Perception of Pharma Sales Model Reshapes The Channels For Development & Commercialization R&D Expensive & Risky 7 Yrs Of Patent Protection Rapid Acceleration MD Dialogue Pressured Need Efficient Channels MCO are adept at converting brands to generic Regulatory/Industry imposed regulation Limited Exclusivity/crowded mkt place Fewer Foot Soldiers/Less Access Product differentiation—cost of entry Need ROI Actively Looking For Solutions To Deliver Quality Communication
Pharma Marketing Effort Becoming More Regionalized Smaller, Coverage Not Physicians’ Handheterogeneous cuffed by MCO Universal prescriber base “Wait/See” MCO approach (demand) Cost containment strategic limit access and dictate brand relevance Increase Pull-through Regionalized marketing programs Increased physician targeting Dominant position in key markets
CRM Will Be Applied to Professional Marketing Strategy • Segmenting doctors by their behaviors and their beliefs – It’s not just about high prescribing deciles – CRM requires… • • Long-range planning Executional discipline Constant feedback and reanalysis Integration across all channels of communication • A return to greater collaboration between representatives of media channels and agency planning teams
Customized Marketing A simplistic example… Informational Needs Dr “A” Dr “B” • • Communications Approach Media Mix Preference • Large-scale clinical study reports • KOL supported • Factual, impartial, professional • Authoritative • Personal selling • On line clinical presentation • Custom online journals • Anecdotal naturalistic data • Peer influence and experience • Emotional, patient perspective, contextual • Local third-party endorsement • Personal selling • Patient support programs Applying the principles of CRM allow personalization along the entire continuum of message, tone, tactics, and media Gives the brand greater relevance and makes communications more effective and efficient
Paulo Costa President & CEO “At Novartis, what I tell my folks is that it is time for us to go back to the future: bringing relationship building and quality of calls back into the equation – not just reach and frequency. ” Novartis Pharmaceutical Corporation Source: Except from roundtable discussion sponsored by The Economist, 2002
Pharma Marketing Effort Becoming More Regionalized Pharma targeting physicians in areas with neutral to favorable coverage Smaller, Coverage Not Physicians’ Handheterogeneous cuffed by MCO Universal prescriber base “Wait/See” MCO approach (demand) Cost containment strategic limit access and dictate brand relevance Increase Pull-through Need to increase productivity Regionalized marketing programs Increased physician targeting Dominant position in key markets Need To Optimize My Marketing Dollar For Best ROI
Emerging Factors Will Shape Future Landscape The Industry is transforming itself, are we ready? Big Pharma—not going to be so big • Specialized medicine will change promotional model More precision marketing efforts • Better customer information will shape efforts Physician acceptance of new technology • e. Prescribing, online information exchange and learning Smaller sales forces • Back to the Future: specialized & valued consultants Patient Education • Better channels for educating public on health information
Opportunity Lies At The Confluence of Our Customers’ Needs MDs Have Less Time Limited Resources Demanding Patients Negative Perception Increased Customized Channels Regional Brand Relevance
Thanks To My Colleagues Whose Work I’ve Cited
Thank You Ken Begasse Jr. Partner, Director of Client Services Concentric Pharma Advertising 71 West 23 rd Street, 9 th Floor New York, NY 10010 Concentric-rx. com
- Slides: 33